The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1887-11-20
THE STEEL RAIL TRADE.
inducements for the Railroads to
Make improvements.

The attention of the entire iron and
steel trades, and of the general public,
has been directed for some time to the
struggle which has been going on be-
tween sellers and buyers of steel rails.
The decline in them has been the cause
of much jubilant comment by those
who have sought profits on the bear side
of stocks in Wall Street, and there Is
good evidence that false reports of sales
have been iuGustriously scattered
broadcast to weaken the position of
sellers. This is the season of the year
when usually heavy business is done
for forward delivery, and yet thus far
the sales for 1888 have been very small
indeed. Buyers with few exceptions,
have Leld off persistently, there
being indications that in the case of at
least one group of trunk lines it is the
result of concerted action. Sellers, on
the other hand, have, with the excep
ton of few, been very anxious to en-
ter orders for at least fair part OF their
capacity. Under the circumstances
prices have rapidly given way, and $50
has been reached lately by some of the
eastern mills, at which business has
been done to the extent of about 1900
tons for New England roads one con-
tract at least netting no more than
about $3l 60. In the northwest there
has been some business aggregating
about 10000 tons at equivalent prices,
but the reports of heavy sales for the
southwest are as authorativelY denied
as they are vehemently asserted.
That is briefly the situation with
which the steel-makers will have to
grapple at their meeting to be held to-
day Thursday. 1t is understood that
number of different plans are to
come up for consideration to pre-
vent collapse of values to I'M
remuneratlve prices. Some of the
proposals thus to be brought forward
have been actively discussed for some
time past by rail makers, and arelas
emphatically condemned by some as
they are urgently advocated by others
1t remains to be seen whether any
method of supplementing existing ar
engagements can be suggested which will
arrest the declining tendency. Some
of the companies decline even now to
compete tor business, on the ground
that it leaves them no margin. Others
WILL naturally seek an outlet for steel in
other directions, and have already be-
their determination to run, even if they
must sell close TO cost. When it is con-
sidered that, according to location, ia
cjllties, etc., $l2 to $l4 represents the
cost added to the cost of pig iron, the
fact will be appreciated that selling
prices are close to cost IN many cases
at present rates for ore, fuel and labor.
Every decline in rails, unless more
than compensated for By lowering or
cost of raw materials, must increase the
Indifference of a growing number of
sellers. The effect has already become
apparent.
On the other hand, the better out
look in financial circles gives promise
of greater facility in marketing bond
issues, which, for some time past, it
has been difficult to place at all. a
good many schemes of magnitude are
now under way or are maturing, and it
may be easily found after all that the
rail consumption of 1888 will be heavier
than has been thought possible for
some time past. 1t may be conceded
that the situation IN railroad matters
in the northwest and in the southwest
is far from encouraging, that specula-
ton in mines, lands and real estate IL
the south has received check. Yet the
requirements for renewal and pressing
necessity of extension of 10000 miles
of road call for q heavy annual con-
sumption of material. The railroads
have been very prosperous this year
and can afford to devote money to
betterments.-IrOn Age.